You want to make your flip as appealing as possible to potential buyers, but over-improvements and ill-conceived changes could hurt your bottom line, or even jeopardize the sale of your flip. Consider these scenarios before your next project.
There are upgrades, and then there are upgrades. The latter isn’t always a great thing. For example, if you invest $80,000 on a super high-end kitchen in a home where the neighborhood comps are $200,000 you may not recoup your investment, and your kitchen will eat into your bottom line.
Also, if you do an uber upgrade in your kitchen and the rest of your house doesn’t have the same level of quality, buyers will be turned off by the inconsistency.
The number of bedrooms in a home is a major factor that buyers consider when deciding on which homes to add to their lists. So it’s not always the best idea to completely convert a bedroom into a room for another use, like a full-on gym, especially if the conversion involves removing closets and other storage spaces. If your home has one less bedroom than your competition, you may put it out of the running.
A garage can also be a feature that determines interest from buyers. Converting it into a different space can sometimes be detrimental. Many buyers may prefer to have a garage, especially in parts of the country with heavy winters or in neighborhoods where street parking is limited.
Transforming the backyard of your flip into a peaceful oasis is sure to impress buyers, right? What better centerpiece of your restful retreat than a pool? Be careful. Pools are expensive to install, and while you may have accommodated for the expense, pools can be costly to maintain and may give some buyers pause. Pools may also present safety hazards to some families.
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